Trade deficit widens to $10.16 bn in Oct

November 16, 2016 — INDOLINK Consulting (es)

Source: Business Standard, Nov 16, 2016

New Delhi: Country’s merchandise exports continued to rise for the second consecutive month in October, growing by 9.59 per cent in October.Export rose to $ 23.51 billion in October against $21.45 billion in the corresponding period last year, government data showed on Tuesday. In September, exports rose by 4.6 per cent, only the second occasion in the 22 months since December 2014 when a chronic fall in exports started.

Cumulative exports for the April-October period in the current financial year 2016-17, was $ 154.91 billion, compared with $155.17 billion for the corresponding period in FY16.

India’s imports also rose by 8.11 per cent to $33.67 billion in October, compared with the year-ago period when it was $31.14 billion. Cumulative import in the current financial year reached $ 208.08 billion, compared with $233.41 billion the previous year.

Among major export items, outbound trade fell in 12, against 13 in September. Export of engineering goods, which made a comeback in the growth charts back in August, rose by 13.86 per cent after the 6.4 per cent rise seen in September. Petroleum products also rose after months of fall, rising by 7.24 per cent. The fall had been reduced in recent months with September showing a1.4 per cent fall, down from the 14.1 per cent slide in August.

On the other hand, exports of drugs and pharmaceuticals, however, fell by 1.73 per cent after rising 0.9 per cent in September.

Export of readymade textile goods, gems and jewellery, both major earners, also continued strongly. While textile goods rose by 10.68 per cent as compared to 12.6 per cent in September, gems and jewellery rose by 21.84 per cent after a 22.4 per cent rise in September.

Gold imports exploded in October, growing by 108.43 per cent after falling by a large margin for eighth months in a row. Imports touched $ 3.44 billion, compared to $ 1.67 billion a year before.The yellow metal’s price had fallen a massive 77.5 per cent in August.

The commerce ministry noted that apart from Japan, where export rose 10.03 per cent, many major economies (America at minus 0.20 per cent, European Union at minus 5.78 per cent, China at minus 3.01 per cent) were experiencing slow recovery in export growth, according to World Trade Organization data for July.